100% Online Course
This course explores the use of accounting information, especially cost analysis, by management in the planning and controlling of organizations. Topics include budgeting, cost systems, reports and information. You must take Introductory Accounting before Managerial Accounting.
- is focused on providing managers of all types of organizations with the information they need to conduct their affairs;
- should develop the techniques for providing information for planning, directing operations and solving problems;
- is a major information source for managers, but it does not presume to be the only information for aiding managerial tasks.
At the end of this course, you will be able to explain the following managerial accounting concepts:
- The main requirement is for “relevance” and clarity with managerial accounting as a result, you will often find that the same financial data are presented in different ways and in more than one report, depending on why the information is needed. Because the information is intended for internal use, it is not subject to the legislative requirements that govern external financial reporting.
- Projected, as well as historical, financial data will be used. Budgeting is a prime example of accounting with future data;
- In relation to financial accounting, often alternative measures of “income” will be used in managerial accounting; as the purpose for which management needs this kind of measure changes.
- There is an increased focus on the use of non-financial measures in managerial accounting. These will be required along with the usual financial information, and qualitative as well as quantitative information will have to be presented.
Topics covered are:
- Managerial Accounting and Cost Terms
- Cost Behaviour and Cost-Volume-Profit Analysis
- Job Order Cost Accounting
- Process Cost Accounting
- Cost-Volume-Profit Analysis
- Master Budgets and Planning
- Standard Costs and Flexible Budgets
- Capital Budgeting Fundamentals
- Relevant Costs and Decision Making